Q. I'm a working mom who wants to start a home-based business but am concerned whether this could be career suicide. I love my job but the hours are crushing. I really want to spend more time with my child without sacrificing my work or income potential. Am I being naive?
A. Home-based businesses have skyrocketed over the past few years, and the trend is only escalating. For moms, the ability to spend more time with their child while running their own business is a key driver of this movement.
Today, there are some 25 million home-based businesses in the United States that combined generate some $427 billion in annual revenue, according to Entrepreneur magazine. In fact, some 50% of all U.S. business are home-based, according to Newsweek. And of those, about 70% are operated by women, so you're not alone in wanting to embrace this option.
In addition, the average annual income for home-based businesses is $63,000—almost $20,000 higher than the median U.S. household income. And indeed, many entrepreneurs make their first million working from home (such as the founders of Internet sensation YouTube and Spanx founder Sara Blakely), so if you play your cards right, a home-based business can be a lucrative career that also suits your lifestyle desires.
Obviously, some fields are more conducive to home-based work than others. Some good examples are public relations, human resources consulting, dentistry, accounting, writing, travel agents, general practice physician and Web designing, to name a few. But given the explosion in companies offering telecommuting as an option, it's not surprising that many people are deciding to branch out on their own and become entrepreneurs.
Here are some common reasons why a home-based business may be right for you.
1. It's Convenient
Most workers complain about their daily commutes. In fact, Americans spend some 100 hours a year commuting to work, according to the U.S. Census Bureau. That's more than two weeks out of every year! Working from home presents its own challenges, but driving or sitting on a train or bus for a couple of hours a day isn't one of them. In addition, those who work from home are not affected by escalating gas prices, the stress of traffic or transportation costs.
2. You Can Be There For Your Children
One of the most common reasons women launch home-based businesses is to be around their children while still earning money. Most moms will tell you that flexibility in their work schedule is their No. #1 priority. Working moms recognize how quickly children grow up, and value being able to pick their kids up from school or be home when their kids are dropped off. While a major challenge of home-based entrepreneurs is that they often work around the clock because their office is their home, being accessible to their kids far outweighs any negatives.
3. You Can Be More Efficient
In addition to saving time (and hassle) on commuting, you can be more efficient working from home because you're not distracted by colleagues constantly flitting in and out of your office or near your desk, and you don't need to spend time going out to get lunch every day.
According to a recent survey by AOL/Salary.com, the average worker wastes about 2 hours during a typical 8-hour workday, with socializing being the No. #2 time-waster. No one's saying employees aren't entitled to take breaks (in fact, it's necessary to maintain your sanity sometimes), but most people would probably prefer to spend an hour or two less at the office if given the choice.
4. You Have Flexibility in Your Schedule
Another appeal of a home-based business is being able to run errands at your convenience. When you're at the office, it's not possible to pick up the dry cleaning, squeeze in a lunchtime workout or do your laundry, but you can do all of these (in a single day even!) when you work from home.
5. There Are Desirable Tax Breaks
There are several attractive tax deductions available to small business owners who work from home. For instance, you can deduct certain expenses such as your computer and related equipment, utilities (including water, gas and electricity), rent, phone bills and real estate taxes, to name a few. [Editor's note: Stay tuned for next week's Ask the Experts, when we'll discuss tax deductions for home-based businesses.]
6. Dress How You Like
People who work in formal office environments such as law firms, investment banks, or other corporate offices will appreciate being able to get their work done without having to wear a business suit or high heels. While you don't want to sit around all day in your pajamas (seriously, don't do this), it's nice to have the option of not having to dress up every day.
7. You Can Work...Whenever
This can snowball into a major problem if taken to an extreme, but the beauty of a home-based work situation is that you don't need to schlep all the way back to the office if you suddenly remember an urgent e-mail that needs to go out or you have to check up on a project. Along the same vein, you can get work done around your child's schedule (e.g., after they go to bed or before they wake up).